Munich Personal RePEc Archive

Education Occupation Mismatch in Developing countries

Khan, Bilal Muhammad (2019): Education Occupation Mismatch in Developing countries.

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Abstract

This paper contributes to the literature highlighting the cost of education-occupation mismatch in the labor market. Most of the existing literature analyzing the education-occupation mismatch has been focused on the developed economies. Using the Skill Towards Employment and Productivity (STEP) data, this paper analyzes the loss in income as a result of the education-occupation mismatch in developing countries. The results suggest that vertically mismatched (over-educated as well as under-educated) workers earn significantly less than the "matched" workers, whereas there is no significant penalty for being a horizontally mismatched worker. This paper also found the over-educated and horizontally mismatched workers to be significantly less satisfied with their life as compared to the "matched".

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